Budget stalemate continues in D.C.

Senate Democrats offer cuts, tax hikes, House GOP asks big reductions

Associated Press

Associated Press

Published 11:21 pm, Wednesday, March 13, 2013

President Barack Obama turns to reporters as he leaves Capitol Hill in Washington, Wednesday, March 13, 2103, after his closed-door meeting with House Speaker John Boehner and Republican lawmakers to discuss the budget. (AP Photo/J. Scott Applewhite)

President Barack Obama turns to reporters as he leaves Capitol Hill...

House Speaker John Boehner of Ohio, pauses as he comments to reporters on Capitol Hill in Washington, Wednesday, March 13, 2013, following a closed-door meeting with President Barack Obama and House Republicans to discuss the budget. (AP Photo/J. Scott Applewhite)\

House Speaker John Boehner of Ohio, pauses as he comments to...

House Speaker John Boehner of Ohio, accompanied by House Majority Whip Kevin McCarthy of Calif., and Republican Conference Chair Rep. Cathy McMorris Rodgers, R-Wash., comments to reporters on Capitol Hill in Washington, Wednesday, March 13, 2013, following a closed-door meeting with President Barack Obama and House Republicans to discuss the budget. (AP Photo/J. Scott Applewhite)

WASHINGTON — Senate Democrats unveiled a largely stand-pat budget Wednesday that calls for $1 trillion in new tax revenues over the coming decade but actually increases spending, while protecting the party's domestic policy priorities and adding $4 trillion more to the national debt than a slashing alternative from House Republicans.

The plan by Budget Committee Chairwoman Patty Murray, D-Wash., blends about $1 trillion in modest cuts to health care providers, the Pentagon, domestic agencies and interest payments on the debt with an equal amount in new revenue claimed by closing tax breaks.

But because Democrats want to restore $1.2 trillion in automatic spending cuts over the same period — cuts imposed by Washington's failure to strike a broader budget pact — Murray's blueprint increases spending slightly when compared with current policies.

On the other side of Capitol Hill, House Budget Committee Republicans barreled ahead with an entirely opposite approach that whacks spending by $4.6 trillion over the coming decade, promises sweeping cuts to Medicaid and domestic agencies while setting a path to balancing the government's books within 10 years.

The House panel was expected to approve the plan, by Chairman Paul Ryan, R-Wis., late Wednesday; Murray's plan was set to be approved by the Democratic-led Senate panel on Thursday. Both measures face floor debates next week.

Even as Democrats controlling the Senate and the conservative House moved in divergent directions, President Barack Obama again traveled to the Capitol to open a dialogue with lawmakers. Wednesday's meeting was with House Republicans, who welcomed the gesture even as they noted that deep divisions remain. "We've got a big difference between us," said Rep. Greg Walden, R-Ore. "He supports higher tax revenues."